DBT Bureau
Pune, 9 Sep 2026
Sugar prices are facing short-term weakness after a sharp correction from the recent peak of ₹6,400 per quintal. Spot sugar currently stands at ₹4,580, down 5.18% weekly and 2.55% monthly, while prices have gained 16.54% over three months and 22.54% year-to-date, according to the latest Sugar Report by Kedia Stocks and Commodities Research Pvt. Ltd
Sugar prices had earlier gained nearly 40% over two months amid concerns over tightening global supplies and the potential impact of El Niño on production. However, government intervention and comfortable domestic stocks have triggered a sharp correction from the ₹6,400 peak. India has also allowed duty-free imports of 1 million metric tonnes of sugar, reinforcing domestic availability.
India’s sugar supply position remains comfortable. Closing stocks for 2025/26 reached 8.55 million tonnes, up 41% year-on-year, while the Indian Sugar & Bio-energy Manufacturers Association (ISMA) expects next year’s opening stocks at around 35 lakh tonnes. At the same time, below-normal rainfall across Maharashtra, Karnataka and Marathwada has raised downside risks for 2026/27 sugar production.
Global fundamentals remain mixed. The International Sugar Organization (ISO) maintained its 2025/26 production estimate at a record 182 million tonnes, up 3.5% year-on-year, while USDA projects global ending stocks for 2026/27 at 44.4 million tonnes, an increase of 2%. However, Brazil’s Center-South sugar production declined 7.9% year-on-year in early August, while Conab forecasts Brazil’s 2026/27 output to fall 2.9% to 42.9 million tonnes.
Policy and production costs are also influencing the market. India’s 2026/27 sugarcane Fair and Remunerative Price (FRP) has increased to ₹365 per quintal, raising the production-cost floor. The government has also restricted bulk consumers using more than 10 tonnes of sugar per month from holding inventories for more than 15 days. Meanwhile, EU sugar output is expected to fall 15%, with stocks declining 22% to a four-year low.
Technically, sugar remains under pressure. Kedia Research said prices below ₹4,600 could further test ₹4,200–₹4,100, while ₹4,720 remains a key resistance level. RSI is declining and MACD has turned bearish, indicating weakening momentum.
Disclaimer : Investment in securities & commodities market are subject to market risks, read all the related documents carefully before investing
